Equity issuance

Equity issuance

markets
1. PRIMARY
  1. securities sold for first time
  2. means of RAISING new long-term CAPITAL
2. SECONDARY
  1. existing securities traded
  2. does NOT raise new capital
methods
1. offer
  1. for subscription
    1. company issues shares directly to general public
  2. for sale
    1. LEAD MANAGER buys new shares before re-selling
  3. pricing offers (3)
    1. fixed price
      1. STAGS
    2. tender offer
      1. COMMON STRIKE PRICE
      2. bids
    3. bookbuilding
      1. demand curve
2. placing
  1. SELECTIVE MARKETING
3. intermediaries offer
  1. placing through several lead managers (brokers)
4. vendor placings
  1. buyer pays for acquisition by issuing shares in itself
  2. buyer issues shares in itself to vendors
  3. vendors sell shares to receive cash
5. stagging
  1. stag buys new shares and sells in secondary market for profit
rights issue
1. open for 21 days
2. theoretical ex-rights price
  1. price of shares AFTER rights issue
    1. shares usually offered at discount - dilutes share price
  2. calculation
3. theoretical nil-paid price
  1. theoretical ex-rights price less subscription paid
4. splitting rights
  1. number of rights to be sold = rights available x sub price / theoretical ex-rights price
5. choices
  1. take up rights
  2. sell rights
  3. split
  4. lapse
bonus issue
1. capitalisation / scrip issue
2. new shares issued FREE OF CHARGE
  1. NO CHANGE in net assets or shareholder's funds
3. reduces share price
  1. more attractive to investors
4. theoretical ex-bonus price
5. share splits and consolidations
  1. re-state financial ratios: eg NAV per share and EPS

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	Criado por Paul Dawson quase 11 anos atrás